How Covid-19 Sparked an Unlikely Startup Boom for Brands
Turbulent times have created breakout moments for DoorDash, Oatly and other stars among consumer insurgents. The trend is even broader than that.
Oatly has gotten a lot of attention in the startup world, but it is hardly alone.
Photographer: Gabby Jones/BloombergThe U.S. economy is badly wounded, and shoppers’ behavior remains cautious and unpredictable. The turbulent times, though, have created breakout moments for some stars of the consumer startup universe. Food-delivery heavyweight DoorDash Inc. filed for an initial public offering on Friday, signaling a new chapter in its corporate life not long after raising $400 million in a private fundraising round. Instacart, a grocery-delivery app, is reportedly preparing an IPO at an eye-popping $30 billion valuation on the heels of a $200 million financing round it announced in October.
These familiar names were hardly alone in getting a vote of confidence this year from venture capitalists. It turns out, 2020 is shaping up to be one of the best times ever for consumer startups. Deals and financing for such companies totaled more than $6.6 billion in the third quarter, according to CB Insights. Funding for the full year is projected to reach nearly $18 billion, an all-time high.